Minister approves rate rise

MINISTER for Local Government Kerry Hickey yesterday announced the State Government has approved Shellharbour City Councils application for a 9.5% rate rise.

Minister Hickey said that after careful consideration of the Departments assessment of Shellharbour City Councils application, the Government had decided to approve Councils bid to increase general income above the 3.6% rate cap.

It was vital that councils demonstrate how a special variation in rates would benefit ratepayers, Mr Hickey said.

According to Mr Hickey, the Council met the stringent criteria required for a special rate variation request.

Shellharbour City Councils General Manager Brian Weir said that the Governments approval of the rate increase was welcome news for the City.

It is never an easy decision to ask people to pay more, but the rate increase was vital to enable us to address ageing infrastructure, increased costs and maintenance of service levels in a rapidly expanding city, Mr Weir said.

Every council is facing the same problem, and we are lucky in some ways that Shellharbour has developed sporadically over the last 150 years, with not all infrastructure needing attention at once.

Some Councils such as Ryde and Marrickville , developed in their entirety some 150 years ago, are facing many millions of dollars more to finance their programs of asset rehabilitation.

It is pleasing that our application has been recognised as being justified.

Not everyone was as pleased with the Governments decision as Mr Weir.

Cr Geoff Rose said he was very disappointed with the decision.

Im totally against the rate increase and I think the whole of Shellharbour has been let down, Cr Rose said.

I wont be supporting the adoption of the 2006-2007 Management Plan and Budget.

Cr Charlie Mifsud said he was disappointed that the Government had ignored the petition of some 6000 names against the rate increase.

Im not saying that a rate increase isnt warranted, but there were alternatives that I believe could and should have been looked at, Cr Mifsud said.

I wont be supporting it.

Cr Jeff Bailey called the rate increase a kick in the guts for residents of the area and another slap in the face on top of petrol prices, interest rate rises and high unemployment.

Im not at all impressed, Cr Bailey said.

I think its pretty disgusting and I hold the majority of the Labor Councillors to blame.

A rate increase may have been necessary, but its absolutely ridiculous at this level.

Shellharbour City Council was holding an Extraodinary Meeting last night to adopt the 2006-2007 Management Plan and Budget.

Given that the submission for the rate increase was approved by Council and that the Government has approved our application, I am confident the Budget will be adopted at the meeting, Mr Weir said.